April 26, 2013 / 10:40 PM / 5 years ago

Moody's, S&P settle lawsuits over SIV investments

April 26 (Reuters) - Settlements have been reached in two long-running lawsuits seeking to hold Moody’s Investors Service and Standard & Poor’s responsible for misleading investors about the safety of risky debt vehicles that they rated.

The lawsuits had accused Moody’s and S&P of negligent misrepresentation over their activities regarding the Cheyne and Rhinebridge structured investment vehicles.

An S&P spokesman confirmed on Friday that the cases have settled. Moody’s and Morgan Stanley, which marketed both SIVs and helped structure the Rhinebridge SIV, have also settled, a person familiar with the matter said on Friday.

Moody’s and Morgan Stanley did not immediately respond to requests for comment.

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